Companies such as Starbucks, Paramount and Microsoft are the latest companies to issue new return office requirements, but Mass RTO has been pushed forward in the company America for many years. Getting workers back was not that easy.
People spend around 25% at home, and that distribution has not continued since spring 2023, says Nick Bloom, a professor at Stanford University and a leading researcher in remote work trends.
The working-from-home rate continues, Bloom tells CNBC that people will stick to their work, even if it’s sour in the labor market, and that CEOs will turn around calling RTOs.
What gives?
Passive resistance
Bloom refers to several factors. The first thing is to “increase compliance gaps.”
“Companies are announcing RTOs,” he says. “It doesn’t look like employees are following on the ground.”
He considers it to be passive resistance. The CEO makes big announcements, but the interim managers tasked with implementing the rules don’t want to follow them on their own.
Managers are usually evaluated for team performance and are unlikely to benefit from an increased attendance rule if they are performing well, Bloom says. Advanced leaders may also overlook the rule bending.
Also, many companies are shrinking their middle manager positions. This can lead to burnout among remaining bosses, which could result in less enforcement of these RTO duties.
I’ll go back to the office, but I’ll be working for the workers.
Next is the question of tracking whether people are participating in the actual number of days required in the company policy.
I take companies with a 4-day office policy, but most people only have three people in it. It can be difficult to track exactly why someone didn’t meet attendance requirements for a particular week. They can spend sick days or take time off at client meetings, meetings and bookings, Bloom says.
One company spoke of by Fortune 100 Bloom has a three-day attendance policy, but it’s only flagged if someone is below the eight-week rolling average and someone is less than a day and a half a week. The company’s HR chief has chalked up the time it lacks for people on business trips, Bloom says.
Other workers are showing up for the required number of days, but experimenting with the time they actually have to be there. According to a recent survey of 2,000 full-time workers from Owl Labs, about 43% of hybrid workers go to the office for a few hours just to take part in a coffee badge or show off their faces, and 12% want to give it a try. Of those caught, over half said their employers didn’t care about the practice.
Coffee badges have fallen from 2023 levels, but are consistent with last year.
Most hybrid workers enter the office three to four days a week, according to Frank Weishautt, CEO of Owl Labs. At the same time, they find ways to maintain flexibility with coffee badges, scheduling personal appointments during the day, or try out what he calls “microshifts.”
As far as flexibility goes, “they’re finding it everywhere,” says Weissaupt.
Ending RTO companies to be more flexible
Experts say workers stop when they don’t have the flexibility they want, or they see it being taken away by their employer. That could be due to design.
“RTOs are used as a slightly cheaper way to reduce staffing,” and by avoiding layoffs and paying for retirement. You can scoop up your resignation by young and small businesses, providing flexibility as a perk when you can’t compete with the salary of large companies. That may be another reason why the working-from-home rates remain the same overall.
The problem with using RTO to reduce personnel is that you can’t choose who leaves.
Previous research from the University of Pittsburgh found that women, senior and skilled employees are most likely to leave the company that has enacted a new RTO policy.
Companies say that by offering remote and hybrid jobs, they will improve employment capabilities in the so-called “deans of talent” especially in roles that are difficult to get into and in certain parts of the country, says Nicole Bachaud, economist at Ziprecruiter.
According to data from Ziprecruiter, about 20% of employers are considering hiring completely remote workers this year, with similar shares hunting to hire candidates in hybrid roles.
“There is still a demand within the company for these types of roles,” says Bachaud.
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